[mohrds]

My brother was suckered into one of those places promising huge interest rate cuts. Out of 7 credit cards they took over payments on, the most the interest was lowered on any of them was 1.25% Most were .5% reduction. Not much when you are looking at 18-25% interest rates. Then they have the $49.99 Monthly Membership fee, a $2 per month per account management fee, a $5 per payment fee for each creditor, and a $12 per month fee to ACH the money from his bank account. That adds up to $110.99 per month to "save" about $75/mo. in interest.

The best advice I can give is to go talk to the lender that you have the best payment record with. Take them your other bills and ask them to offer a consolidation plan to move all your debt to them. Secure it with everything you can (furniture, tools, TV, stereo, roller skates, etc.) to get a secured loan interest rate. Check if there is a rate deduction for ACH payments or if you have payments taken every two weeks instead of once a month.

Then make a realistic budget. No CDs, no eating out, buy the cheap booze instead of the top shelf and then save that extra money to have fun out once in a while. You have to allow yourself some fun, but only using the cash you saved.

In no time you will be back on your feet.

Good Luck. I've been through it and I'm more financially responsible because of it. Its hard, but it can be done on any income level.

Another tip is to place a bright sticker on everything you bought on a credit card. TV, stereo, computer, etc. Then you will be constantly reminded that you still owe accumulating interest on them because you didn't save up for purchase. The stickers start to eat away at you until you realize that you didn't need this particular item or that one and that helps you from buying stuff on credit in the future.

Doug